If you’re faced with the prospect of a valued employee intending to leave your company, the knee-jerk reaction would be to dissuade them by making a counter offer. But is a counter offer really the best option in this situation? And if it is, how should you go about making one? Kazim Ladimeji in Recruiter.com discussed the advantages and disadvantages of counter offers. Here are three considerations of his to keep in mind:
The irreplaceability of the employee. Consider whether or not you can find another employee to perform the same task and produce an equal (or better) output at an equal (or lower) pay rate. If you can, a counteroffer may not be advantageous.
Making an impulsive counteroffer. A counter offer comprised of a pay raise may convince an employee to remain at your company for a while longer, but once that appeal fades, they may begin looking to leave once more. Examine their reasons for leaving rather than immediately trying to “fix” the problem and possibly ignoring other important factors.
A non-financial counter offer. Your counter offer does not have to be completely financial, if at all. Seek out and identify the employee’s other reasons for leaving, be it a lack of flexibility, boredom, personal matters, etc. Then, adjust your counter offer to meet these reasons.
Statistics show that the average employee may work up 10 different jobs in their lifetime. So keeping in mind that employees are already temporary, make sure your counter offers are selective, thought-out, and are truly what is best for your business. After the initial glow of a pay raise wears off, employees may again become dissatisfied with their job and begin looking around once more. Make sure that in the long run, your counter offer does more to help your business than harm it.Conselium Executive Search, the global leader in compliance search.